Looks Like More Wealthy Americans Are Saying Goodbye to the U.S.
The country just got done celebrating its independence this past weekend. With fireworks and all kinds of parties, Americans celebrated to show their appreciation for one of the greatest gifts they have: Freedom. Most Americans are very proud of their citizenship, even if they don’t always like everything the about the laws of the land. One of the topics that is often a sore spot is taxes, especially on the wealthy. With that in mind it’s no surprise that there is another report claiming that more of America’s wealthy are choosing to give up their American citizenship in order to avoid the high cost of taxes in the United States. It sounds like a broken record.
Americans Saying Goodbye to the US
It’s not that these citizens aren’t proud of their country, but rather they just can’t come to grips with the continued effort by the federal government to take so much of their money, simply because the earn more than others. According to reports, more Americans renounced their citizenship during the first quarter of this year, than during any other recorded quarter.
Of course, the total number on record over that time period was only 1,335, which of course represents a mere drop in the bucket compared to the total number of American citizens. However, when compared to all previous years, 2015 appears to be headed for a record for the most total defections in a single year. Therefore the total number cannot be discounted as insignificant.
A Growing Trend Amongst the Wealthy
Likewise, the numbers continue to increase each year. The total number of defections has risen consecutively each year since at least 2012 and current numbers would indicate that the total for this year would surpass 5,000 people. Just last year the total number of defections was 3,415. According to several tax lawyers, there are indications that the numbers could continue to grow. Many lawyers say they have dozens of clients who ask about this option on a regular basis. In fact, according to one online survey done by a Hong Kong firm, nearly one-fourth (23 percent) of respondents said that they are “seriously considering” renouncing their citizenship because of taxes.
Losing the Wealthy a Cause for Concern
According to these same lawyers, the increasing number of defections is cause for concern, because most of the people who leave are wealthy. The reason these individuals are leaving is because the IRS requires all American citizens to report their income from anywhere else in the world and pay taxes on it, even if they didn’t earn the money in the U.S. and when they don’t even live in the country. That is a double whammy because these individuals must pay taxes in the countries where they live and earn the money, already. With so many other countries offering lower tax rates, more and more wealthy individuals are saying enough is enough and heading for the borders.
Farewell to Higher Taxes
It appears that as long as the U.S. continues to employ its international tax laws and require such stringent reporting and tax paying that more and more wealthy individuals will just decide to pack up and leave for good. It’s a scenario that could potentially cost the country millions because many defectors are counted among the nation’s wealthiest individuals.
We hope you found this article about “Looks Like More Wealthy Americans Are Saying Goodbye to the U.S.” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Considerately yours,
GROCO, GROCO Tax, GROCO Technology, GROCO Advisory Services, GROCO Consulting Services, GROCO Relationship Services, GROCO Consulting/Advisory Services, GROCO Family Office Wealth, and GROCO Family Office Services.
Alan L. Olsen, CPA, Wikipedia Bio
Proud sponsor of the AD Show.
Obama Looking to Stick the Wealthy With Even More Taxes
His second term in office is winding down, but President Obama would still like to raise taxes on high net worth individuals before he checks out of the White House at the beginning of next year. Although the president has already taken several measures to raise the effective tax rate on the wealthy, he is…
Which Tax Breaks Help High Net Worth Taxpayers the Most?
It’s no secret that the United States government generally taxes high net worth individuals at a much higher clip than those in the lower- and middle-income brackets. However, despite that fact, there are still many provisions in the tax system, if used properly, can help wealthy earners save on their taxes. So what are some…
Tax Preparers Get Busted for Fraudulent Practices
Every tax season is full of stories and tales of people who go to great lengths to avoid paying taxes. In addition there are dozens of reports of unscrupulous tax preparers that get caught trying to cheat the system: either their clients or the IRS, or both. We want to share a few of those…
Entrepreneur Think Deductions, Deductions, Deductions!
Are you an entrepreneur looking for a tax break? Entrepreneurs have a lot on their plate, including living with the financial risk of their entrepreneurial efforts. That’s why it’s so important for any entrepreneur to be aware of any and all deductions come tax time. There are dozens of deductions to be had, but the…